2 Tips to Keep Health Insurance Deductibles Down

Keeping health insurance deductibles down helps an insured individual lower their costs and reduce their out-of-pocket expense. Lower deductibles means that the health insurance company is on the hook for more of the expense associated with a loss due to an illness or injury. There are at least 2 ways to keep health insurance deductibles down. Understanding that in holding your health insurance deductible down, there will be a trade off in the cost of your health insurance policy.

Pay a Higher Premium

The first tip for holding your health insurance deductibles down is to pay a higher premium. The cost of your health insurance, whether individual or group, is based on your health, age, gender and the amount that you are willing to self-insure. Self-insurance, as it relates to health insurance is the deductible, or amount of insurance risk that you retain. A lower deductible means that you are placing more risk on the shoulders of the health insurance company. This will result in a higher premium for you.

Use a Savings Account

Your health insurance deductibles can be held down by using a savings account. Plans that offer flexible savings, health savings and medical savings accounts (F/H/MSA) allow the insured to use pre-tax or after-tax dollars to pay for deductibles associated with a health loss. This will lower your cost and hold down the deductible related to your policy.

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